The People’s Bank of China declared war on foreign ICO

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The People's Bank of China declared war on foreign ICO
The People's Bank of China declared war on foreign ICO

Vice Chairman of the People’s Bank of China, Ban Gongsheng once again warned the organizers of the ICO, who had moved head offices to other jurisdictions, from working with investors from China. He stated this at a meeting of the working group on financial transformation on the Internet on Monday.

Why this is important

  1. After the introduction of the ban on cryptocurrency activities in China, the most popular WeChat messenger had limited support for payment functions for users selling digital money.
  2. WeChat was not the only service that began to cooperate with the government on the issue of last year’s bans. The online forum Zhishi Xingqiu became a popular place for exchanging cryptocurrency, through which foreign agents could contact local traders and carry out transactions on their behalf, charging for their commission services. However, in March the administration of the forum published a statement in which it promised to close access to its platform to users trying to use it for ICO.

He recalled that the ICO, including their veiled versions, remain in China under an interdiction and constitute illegal forms of attracting financing and issuing securities.

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Pan noted that, despite the ban in September 2017, many projects moved to foreign jurisdictions and are still available in the Chinese market.

“Any new financial product or phenomenon that does not have authorization in accordance with the current legislation will be liquidated on the same day when they dare to appear,” the representative of the regulator said.

What kind of methods the Chinese authorities are going to apply in the fight against foreign ICO and trade in cryptocurrencies, he did not specify. Earlier, the People’s Bank of China announced that the share of operations with bitcoin in China’s national currency fell to less than 1% of the global trading volume, Xinhua news agency reported. It is believed that at the peak on the transaction RMB / BTC accounted for more than 90% of the total trading volume.